Diagrams Flashcards
Multiplier Effect
Trade Cycle
Positive & Negative Output Gaps
Kuznets Curve
Phillips Curve
PPF - Maximum Productive Potential of an Economy Depicted on a PPF?
At X or Y, or any other point along the PPF curve.
PPF - Opportunity Cost
The steepness of the curve shows how big the opportunity cost is.
e.g. Big opportunity cost of consumer goods when moving from X to Y. +1 capital goods but -3 Consumer goods.
PPF - Economics Growth & Decline
PPF - Efficient & Inefficient Allocation of Resources
Productive efficiency occurs at any point along the diagram, such as X or Y. There is productive inefficiency when production is within the PPF and not along with it.
Allocative effiency occurs where the particular mix of goods being produced represents the allocation that society most desires, so only occurs at one point along the PPF.
PPF - Possible & Unobtainable Production
Possible production is anywhere within or along the PPF
Unobtainable or future production is anywhere outside the PPF
Marginal Utility & Total Utility
Substitute Products
Complementary Products
Elasticity of Demand & Supply
Incidence of Subsidy
Consumer & Producer Surplus
Tradable Pollution Permits
Externalities (Underconsumption, Overconsumption, Underproduction, Overproduction)
Underconsumption, Overconsumption, Underproduction, Overproduction
Minimum Price
Incidence of Tax
Specific Tax
Ad Valorem Tax
Maximum Price
Expansionary & Contractionary Fiscal Policy & Monetary Policy
